What are the best healthcare stocks to buy now?

Many healthcare stocks are good alternatives for investors to buy now. Some top candidates representing various areas of the healthcare sector include Vertex Pharmaceuticals, Intuitive Surgical, TransMedics Group, UnitedHealth Group, and HCA Healthcare.

Is it smart to invest in healthcare?

While investors must decide for themselves whether any sector is a good fit for them, healthcare could be a smart area in which to invest for many. Healthcare spending is growing faster than the U.S. GDP as the population ages. This should create significant opportunities for innovative healthcare companies.

Do healthcare stocks do well in a recession?

Many healthcare stocks perform relatively well during a recession. Healthcare products and services are usually needed regardless of economic conditions. However, some healthcare stocks might be more affected by recessions than others.

Are profits from healthcare stocks tax-exempt?

No, profits from healthcare stocks aren't tax-exempt. However, nonprofit hospitals (which aren't publicly traded) are exempt from federal and some state and local taxes.

What is the most profitable healthcare company?

Johnson & Johnson (NYSE:JNJ) generates the most profits of any company in the healthcare sector.

Best Healthcare Stocks for 2026 and How to Invest in Them

Everybody needs healthcare -- or will, at some point. And, when there’s something everyone needs, there’s a huge opportunity for investors. Healthcare stocks are shares of publicly traded companies that provide healthcare products or services.

About $9.8 trillion is spent on healthcare globally. Half of that amount -- around $4.9 trillion -- is spent in the U.S. With the healthcare sector growing significantly faster than the overall economy, the numbers will almost certainly be much larger by the end of the decade.

Loading paragraph...

A graphic showing the four types of healthcare stocks: drug, medical device, payer, and healthcare provider stocks. — Image source: The Motley Fool.

Loading image...

How can investors profit from this growth? Here’s what you need to know about investing in healthcare stocks.

Loading paragraph...

Ticker Information Table
Name and ticker	Current price	Market cap	Industry
Vertex Pharmaceuticals (NASDAQ:VRTX)	$493.05	$126.8 billion	Biotechnology
Intuitive Surgical (NASDAQ:ISRG)	$488.62	$172.5 billion	Healthcare Equipment and Supplies
TransMedics Group (NASDAQ:TMDX)	$129.50	$4.5 billion	Healthcare Equipment and Supplies
UnitedHealth Group (NYSE:UNH)	$283.51	$256.3 billion	Healthcare Providers and Services
HCA Healthcare (NYSE:HCA)	$535.14	$120.2 billion	Healthcare Providers and Services
Cardinal Health (NYSE:CAH)	$215.28	$51.1 billion	Healthcare Providers and Services

Data as of Mar 11, 2026. Showing 6 of 6 tickers.

Loading ticker_table...

Loading paragraph...

NASDAQ: VRTX

Vertex Pharmaceuticals

Today's Change

(-1.23%) $-6.13

Current Price

$493.05

Key Data Points

Market Cap

$127B

Day's Range

$489.00 - $499.20

52wk Range

$362.50 - $519.68

Volume

56K

Avg Vol

1.5M

Gross Margin

86.32%

Loading company_card...

Vertex Pharmaceuticals (VRTX -1.23%) stands out as one of the top biotech stocks on the market. The company primarily focuses on developing drugs that treat the underlying cause of cystic fibrosis (CF), a rare genetic disease that damages the lungs and other organs. Vertex has also expanded beyond CF with gene-editing therapy Casgevy (a one-time treatment for the rare blood disorders sickle cell disease and transfusion-dependent beta-thalassemia) and acute pain therapy Journavx.

Loading paragraph...

2. Intuitive Surgical

Loading paragraph...

NASDAQ: ISRG

Intuitive Surgical

Today's Change

(0.57%) $2.77

Current Price

$488.62

Key Data Points

Market Cap

$173B

Day's Range

$479.11 - $492.50

52wk Range

$425.00 - $603.88

Volume

38K

Avg Vol

1.9M

Gross Margin

65.98%

Loading company_card...

Intuitive Surgical (ISRG +0.57%) is a great example of a medical device stock that also falls into the category of surgical stocks. The company’s Da Vinci robotic surgical system has been used in more than 17.6 million procedures since its 1999 introduction. Intuitive Surgical also markets Ion, a robotic system for minimally invasive peripheral lung biopsy. Over the long run, the company should have tremendous growth opportunities ahead with an aging population requiring the types of surgical procedures for which Da Vinci is frequently used.

3. TransMedics Group

Loading paragraph...

NASDAQ: TMDX

TransMedics Group

Today's Change

(-1.03%) $-1.35

Current Price

$129.50

Key Data Points

Market Cap

$4.5B

Day's Range

$128.66 - $132.10

52wk Range

$62.23 - $156.00

Volume

6.4K

Avg Vol

787K

Gross Margin

59.87%

Loading company_card...

Loading paragraph...

NYSE: UNH

UnitedHealth Group

Today's Change

(0.41%) $1.17

Current Price

$283.51

Key Data Points

Market Cap

$256B

Day's Range

$280.62 - $284.07

52wk Range

$234.60 - $606.36

Volume

115K

Avg Vol

Dividend Yield

3.87%

Loading company_card...

UnitedHealth Group (UNH +0.37%) ranks as the largest commercial health insurer in the U.S. It also operates one of the biggest PBMs and is a leader in healthcare delivery services. The company’s size, stability, and dividend make UnitedHealth Group one of the most attractive payer stocks on the market. UnitedHealth Group has also expanded its presence in the healthcare provider market with its 2023 acquisition of home health services provider LHC Group.

5. HCA Healthcare

Loading paragraph...

NYSE: HCA

HCA Healthcare

Today's Change

(-0.47%) $-2.50

Current Price

$535.13

Key Data Points

Market Cap

$120B

Day's Range

$532.70 - $539.98

52wk Range

$310.18 - $552.90

Volume

18K

Avg Vol

1.1M

Gross Margin

15.83%

Dividend Yield

0.54%

Loading company_card...

HCA Healthcare (HCA -0.73%) owns and operates 190 hospitals and around 2,500 outpatient facilities, including surgery centers, physician clinics, freestanding emergency rooms, and urgent care centers. It's the largest health system operator in the U.S. HCA also operates healthcare facilities in the United Kingdom. The company continues to grow, in large part, by making acquisitions.

6. Cardinal Health

Loading paragraph...

NYSE: CAH

Cardinal Health

Today's Change

(-0.81%) $-1.76

Current Price

$215.28

Key Data Points

Market Cap

$51B

Day's Range

$214.43 - $216.99

52wk Range

$120.72 - $233.60

Volume

13K

Avg Vol

1.8M

Gross Margin

3.59%

Dividend Yield

0.94%

Loading company_card...

Loading paragraph...

Your dollars and mine, our capital, is helping shape the world.
David Gardner, co-founder, The Motley Fool

3. Valuation

Determine the value of a healthcare stock before buying to make sure you're paying a fair price.
The price-to-earnings (P/E) ratio is the most popular valuation metric. It measures the price of a stock in relation to its earnings per share, or what you get in earnings for every dollar you invest.
Forward P/E ratios, which use earnings estimates for one year into the future, can be more helpful in assessing the valuation of fast-growing healthcare stocks. Comparing P/E ratios with other stocks in the same industry will help you determine if the stock is relatively cheap or relatively expensive.
Take growth prospects into consideration by checking out the stock’s price-to-earnings-to-growth (PEG) ratio, which incorporates projected earnings growth rates (typically over five years). Stocks with lower PEG ratios (especially when the ratios are less than 1) are more attractively valued than those with higher PEG ratios.

4. Dividends

Some of the best healthcare stocks pay dividends -- a portion of earnings that the company returns to shareholders. Dividends can boost the overall return you receive from owning a stock.
The dividend yield tells you how large a stock’s annual dividend payments are as a percentage of the current share price.
Consider the stock’s payout ratio, which measures dividends as a percentage of earnings and indicates how much of the company’s cash is being used to cover the dividend. The lower the payout ratio, the greater the likelihood that the company will be able to keep paying dividends in the future.

Loading paragraph...

Investing in healthcare stocks FAQ

Loading faq...

About the Author

Keith Speights is a contributing Motley Fool healthcare analyst covering publicly traded companies across pharmaceuticals, biotechnology, medical devices, technology, and marijuana. Prior to The Motley Fool, Keith was CEO of Constant Care Technology, a healthcare technology company; vice president of American HealthTech, a healthcare software company; and a director of operations for Blue Cross Blue Shield of Mississippi, a health insurer. He holds a B.S. in Industrial Engineering from Mississippi State University.

TMFFishBiz

Keith Speights has positions in Intuitive Surgical and Vertex Pharmaceuticals. The Motley Fool has positions in and recommends Intuitive Surgical, TransMedics Group, and Vertex Pharmaceuticals. The Motley Fool recommends HCA Healthcare and UnitedHealth Group and recommends the following options: long January 2028 $520 calls on Intuitive Surgical and short January 2028 $530 calls on Intuitive Surgical. The Motley Fool has a disclosure policy.